KVS – ZIET BHUBANESWAR 2023-24

CLASS-XII
SUBJECT:
CHAPTER WISE SELF TEST QUESTIONS:
(QUESTION BANK )

UNIT 1 - NATURE AND SIGNIFICANCE OF MANAGEMENT

Q. QUESTIONS MARKS
NO.
1 One of the organisational objectives of management is ‘Growth of businesses. 1
Which one of the following is not associated with measurement of business
growth?
(a) Sales volume (b) Number of Employees
(c) Number of Creditors (d) Number of Products offered
2 -------------- refers to the orderly synchronising of efforts of subordinates to provide 1
proper amount, timing and quality of execution.
(a) Planning (b) Organising
(c) Coordination (d) Cooperation
3 ------------- in Management means to complete the task correctly with minimum 1
resources.
(a) Effectiveness (b) Efficiency
(c) Coordination (d) None of the above
4 Vijay works in a bank. The bank is about to lose its position as the leading bank in 1
the banking industry. Vijay was assigned to find out the reason behind poor
performance of the bank. He analysed the situation and came out with the
conclusion that there was lack of integration of efforts made by various
departments like human resource, information technology and consumer
relationship. Identify the managerial concept discussed in the above case.
(a) Cooperation (b) Coordination
(c) Effectiveness (d) Efficiency
5 Mita has a successful ice cream business at Bikaner, namely ‘Smart flavours’. Her 3
ice creams are utterly delicious. She makes ice creams from fresh milk and the
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same are available in a wide range of flavours and packs. She sets viable business
objectives and works with the same in mind in order to ensure that the customers
will come back for purchasing.
Having the first mover advantage her business was doing well. To earn higher
profits, she started cutting costs. This would sometime lead to delay in delivery
and the ice cream was not reaching in the market in time. Over a period of time,
the demand for her ice cream declined and because of it the competitors entered
the market. She lost some of her market share to competitors.
At the beginning of summer season she got back to back orders for supply of 4,000
ice cream packs of different flavours for special occasions. To ensure that the task
was completed and orders delivered in time she hired additional workers. She was,
thus able to produce and deliver the ice cream packs but at a high production cost.
While completing activities and finishing the given task for achieving goals, Mita
realised that she was ignoring one of the important aspects of management.
Identify the aspect of management that has been ignored by Mita. Also explain the
same with the help of example.
6 Shiva Computers Ltd. is a leading company in Computer Technology and IT services. 3
The CEO of the company attributes the success of the company to its managerial
team spirit, which have helped to handle rapid changes in technologies and to
transform into opportunities. Like any other business enterprise profits are
important for survival and growth of Shiva Computers Ltd. The management of the
company believes that a satisfied employee creates a satisfied customer, who in
turn creates profits that leads to satisfied shareholders.
The company has a strong sense of social responsibility. It has set up many
educational institutions in the field of management, engineering and computer
education in which half of the students are girls.
Identify and explain the various types of objectives of management being fulfilled
by Shiva Computers Ltd. by quoting lines from the paragraph.
7 Ayushi works as a soft skill trainer in a corporate house. She begins a new session 3
every time by acquainting the trainees with a process which is vital for achieving
the goals of the organisation effectively and efficiently. She also make them
 KVS – ZIET BHUBANESWAR 2023-24

understand the various primary activities involved in carrying out this process. She
emphasis upon the fact that in the absence of this process it will be difficult for the
employees to attain their personal goals. Moreover the development of the
society will be hampered as the welfare of the people is also likely to be
overlooked by the organisation.
In context of the above case:
(a) Identify and explain the process being referred to in the above lines.
(b) List the primary activities contained in this process.
(c) How does this process help in achieving personal objectives of the employees?
8 Noori owns a garment factory in Gurugram. She has observed that frequent 4
conflicts emerge between production and marketing department which adversely
affects the sales of the company. When she shared this problem with her father,
he told her that these conflicts arise due to the fact that each department is
performing activities in isolation from others and barriers between departments
are becoming more rigid.
In the context of above case:
(a) Identify and explain the quality of management which is lacking because of
which each department is performing activities in isolation from others.
(b) Also, explain any three features of the concept as identified in part (a) of the
question.
9 Esha works as the cost and risk management head of a company in power sector. 4
As a result of her excellent managerial competence, the company is able to reduce
cost and increase productivity. The company belongs to infrastructure sector,
wherein regular amendments are made in the government regulations and
policies. She holds regular meetings to ensure that people in her department are
not only aware of the related changes but are also able to adapt to these changes
effectively. This helps the company to maintain its competitive edge. She
motivates and leads her team in such a manner that individual members are able
to achieve personal goals while contributing to the overall organisational objective.
In the process of fulfilling her duties for the growth of the organisation, she helps in
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providing competitive services, adopting new technology, creating more

employment opportunities etc. for the greater good of the people at large.
In the context of the above case:
Identify the various reasons that have made management so important by quoting
lines from the paragraph.
10 Aman, Ahmad and Ally are partners in a firm engaged in the distribution of dairy 6
products in Maharashtra state. Aman is a holder of Senior Secondary School
Certificate from Central Board of Secondary Education with Business Studies as one
of his elective subjects. Ahmad has done his post-graduation in History and Ally in
dairy farming. One day there was a serious discussion between Ahmad and Ally
regarding the nature of management. Ahmad argued that management was a
profession, whereas Ally argued against it saying that the legal and medical
professions are the only profession because they fulfil all the conditions of
profession. Aman on the basis of his knowledge of Business Studies explained the
nature of management as a profession to Ahmad and Ally.
Explain, how Aman would have satisfied both Ahmad and Ally.
11 A consumer goods company, manufacturing electrical goods, has been facing a lot 6
of problems for the last one year. Its margins are under pressure and its profits
and market share are declining. For this state of affairs, the production
department blames the marketing department for not meeting sales targets and
the marketing department blames the production department for producing goods
which are not of good quality meeting customers expectations. The finance
department blames both the production and the marketing departments for
declining return on investment and bad marketing.
What steps should be taken to bring the company on track?
Answers

Sr no. ANSWERS MARKS

1 C 1
2 C 1
3 B 1
4 B 1
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5 The aspects of management that has been ignored by Mita are 3

Effectiveness and Efficiency. For example, Alka works as a designer
in an export house. As per the terms of an order received by the
export house she has to get 1,000 units of leather jackets made in 14
days @ Rs. 1,500 per jacket. She is able to complete her target
production in 18 days. So, in order to complete the order in 14 days
she would have made the workers work over time. As a result the
cost o production per jacket may have increased by Rs. 100.
(a) In the above case, Alka is efficient in her work as she has been
able to get 1,000 units of leather jackets made @ Rs. 1,500 per
jacket.(b) But we cannot consider Alka to be effective as she was not
able to get the work completed within the stipulated time of 14
days.
6 (a) Organisational objectives: It refers to the utilisation of human 3
and material resources considering the interest of stakeholders.
‘Like any other business enterprise profits are important for survival
and growth of Shiva Computers Ltd.’
(b) Social Objectives: it refers to consistently creating economic
value for various constituents of the society.
‘It has set up many educational institutions in the field of
management, engineering and computer education in which half of
the students are girls.’
7 (a) The process of Management is being referred to in the above 3
lines. Management is the process of designing and maintaining the
environment in which individuals working together in groups
efficiently accomplish selected goals.
(b) The primary activities contained in management process refers to
the functions of management namely; planning, organising, staffing,
directing and controlling.
(c) Personal objectives relate to the needs of employees of the
organisations which must be given due considerations like fair wages
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and salary, growth prospects, good working conditions etc. The

management ensures that individual members are able to achieve
personal goals while contributing towards the overall organisational
objectives.
8 (a) Coordination is the quality of management which is lacking 4
because of which each department is performing activities in
isolation from others.
(b) Coordination is the process of integrating the individual and
group efforts in pursuit of common goals. The three features of
coordination are stated below:
(i) Coordination integrates group efforts: Coordination integrates
group efforts into a purposeful activity by ensuring that activities are
carried out as per predetermined standards.
(ii) Coordination ensures unity of action: Coordination ensures unity
of action as it acts as a binding force between and among
departments and facilitates smooth working of the organisation.
(iii) Coordination is a continuous process: Coordination is a
continuous on-going process as it is required till an organisation
exists in order to integrate diverse activities of different individual/
groups.
9 The various reasons mentioned in the above paragraph that have 4
made management so important are stated below:
(a) Management increases efficiency as it leads to reduction in costs
due to optimum utilisation of resources.
“As a result of her excellent managerial competence, the company is
able to reduce cost and increase productivity.”
(b) Management creates a dynamic organisation so that it is able to
incorporate the corresponding changes in its working with any
change in its business environment.
“The company belongs to infrastructure sector, wherein regular
amendments are made in the government regulations and policies.
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She holds regular meetings to ensure that people in her department

are not only aware of the related changes but are also able to adapt
to these changes effectively. This helps the company to maintain its
competitive edge.”
(c) Management helps in achieving personal objectives of the
employees in the organisation.
“She motivates and leads her team in such a manner that individual
members are able to achieve personal goals while contributing to
the overall organisational objective.”
(d) Management helps in the development of society by contributing
effectively towards it in multiple ways.
“In the process of fulfilling her duties for the growth of the
organisation, she helps in providing competitive services, adopting
new technology, creating more employment opportunities etc. for
the greater good of the people at large.”
10 Aman would have satisfied both Ahmad and Ally by explaining the 6
following features of management as a profession.
(i) Well-defined body of knowledge. All professions are based on a
well-defined body of knowledge that can be acquired through
instruction.
Management too is based on a systemic body of knowledge
comprising well-defined principles. This feature of profession is
present in management.
(ii) Restricted Entry. The entry to the above stated profession is
restricted through a prescribed qualification. But there is no
restriction on anyone being appointed as a manager in any business
enterprise. So, presently this feature of profession is not present in
management.
(iii) Professional association. Legal and Medical professions are
affiliated to a professional association like bar council and medical
council which regulates entry, grants certificate of practice and
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formulates and enforces a code of conduct. There are several

associations of practising managers in india like the AIMA that has
laid down a code of conduct to regulate the activities of their
members. There is, however, no compulsion for managers to be
members of such an association. So, presently this feature of
profession is not present in management.
(iv) Ethical code of conduct. Legal and medical professions are
bound by a code of conduct which guides the behaviour of its
members. AIMA has devised the code of conduct for Indian
managers but there is no statutory backing for this code. So,
presently this feature of profession is not present in management.
(v) Service motive. The motive of legal and medical profession is to
serve their client’s interest by rendering dedicated and committed
service. The basic purpose of management to help the organisation
achieve its goal by providing good quality products at reasonable
prices, thereby serving the society, is being increasingly recognised.
So, presently this feature of profession is not fully present in
management.
This shows that management does not satisfy all the criteria of a
profession. So, Aman would have been able to satisfy both Ahmad
and Ally by making them understand that Management is a
profession but not a full-fledged or a true profession.
11 In this case, there is lack of coordination among different 6
departments. Each department is blaming the others for declining
sales and profit margins.
The top management of the company should take the following
steps:
(i) Every department should be asked to work for the corporate
objectives.
(ii) There should be proper communication among the different
departments.
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(iii) Periodic meetings of the head of different departments should

be held to remove any misunderstanding and to integrate their
efforts.
(iv) The plans of various departments should be coordinated by the
CEO.
(v) Conflicts among different departments must be resolved at the
earliest.

UNIT 2 -PRINCIPLES OF MANAGEMENT

1 Which principle of management aims at securing the loyalty and 1

devotion of the employees by giving them fair and just treatment?
A. Unity of direction B.Equity c. Order D. unity of command
2 What is the purpose of Time Study? 1
A. To eliminate unnecessary motion of workers
B. To estimate the amount of rest intervals
C. To determine the fair day work
D. To differentiate between efficient and inefficient worker
3 Which of the following statement is related to division of work 1
A. Resources should be divided equally among departments
B. Work should be divided into smaller parts
C. Subordinates should be divided among superiors
D. Departments should be divided into sub sections
4 Who is known as the father of scientific management 1
A. F W Taylor B. Harold Koontz C.Gilbreth D.Henry Fayol
5 SG Ltd is a well known company manufacturing washing machines. The 3
company has the policy of paying proper attention to the training of the
managers. The organisation teaches the various management principles
to the managers whenever required so that they apply them and
understand the practical aspects of business through them. Year by
year the organisation is able to increase its revenue this is because
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mangers are able to economically use the funds of the company and
increase the output of workers through various principles of
management. The company has decided to donate 10% of its earning to
nearby orphanage.
Identify the three importance of principles of management highlighted
in above case by quoting lines.
6 Identify the nature of principles of management highlighted in given 3
statements
1. They do not provide readymade solutions as business environment is
ever changing and dynamic.
2. They are applied to all types of organisation, business as well as non
business.
They are developed through research work on the basis of experience
of manager.
7 Identify the significance of principles of management highlighted from 3
the following statement:
1. Management principles help in thoughtful decision making. They
emphasis logic rather than blind faith.
2. Professional courses such as BBA, MBA also teach these principles as
part of their curriculum
Principles of management can be modified according to changes take
place in the environment
8 Satyam Ltd manufactures curtain clothes. Noticing it’s popularity in the 4
market , the company decided to manufacture bed sheets also. The
decision was executed with immediate effect. But the company did not
increase the workforce to the desired extent. The company wanted the
existing staff to manage the work for some time, by working overtime.
The result was that on the one hand the new product of the company
failed to keep its hold on the market and on the other hand due to
overwork the efficiency of the employees declined. On several
occasions it was discovered that a subordinate was getting instructions
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from two or more managers .Managers had started giving simple and
easy work to their known employees and complex and difficult work to
other employees. The company was now ignoring the rules completely.
Identify and state those three principles of management that have
been ignored in the case by quoting the lines.
9 Anuj Gupta and Mangala Sharma are both qualified dentist and good 4
friends. After obtaining a certificate of practice, they decided to pursue
a career of their own choice. Anuj Gupta starts a dental care centre in
the city whereas Mangala Sharma joins a government hospital. They
meet after a long time in a party. Anuj Gupta invites Mangala Sharma
to visit his dental care centre and she accepts his invitation. She
observes at his clinic that there is fixed place for everything and
everyone and tools and equipments are lying in an organised manner.
Also, Anuj Gupta always tend to replace I with We while having a
conversation with the staff members. Later on Anuj Gupta also shares
with her that he always deals with lazy staff sternly to send the
message that everyone is equal in his eyes. Identify and explain the two
principles of management which Anuj Gupta is applying for successful
management of his dental care centre.
10 Rishabh managing director of an electronic goods manufacturing 6
company has been experiencing year to year increase in revenues and
net profit. The reason was that he ensured competition is replaced by
cooperation and Rishabh has always been receptive towards
constructive employees suggestions. He emphasized on worker training
as he felt that efficient employees shall produce more. Thus , he
decided to reward workers by paying them higher pay as compared to
inefficient ones.Identify and explain the principle of management and
technique of scientific management referred in above para.
11 New Delhi Ltd is a famous service providing company .Mr Lakshay 6
Wadhwa is its managing director. He continuously motivates the
research and development department that a new and latest method
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of doing work must be explored. The provision has been made to give
reward to those employees who will participate in a particular
exploration. He also believes that the two groups working in managerial
and non managerial posts are similar to two wheels of an
organisational vehicle. If this vehicle is to be driven in a right way then
both the wheel should be properly aligned. Mr. Lakshay is a successful
leader. Among his employees he has instilled the feeling that no
decision will be taken without consulting the subordinates. To excel,
the other companies in this field is the main motive of Mr Lakshay.
Paying attention to training is the secret of the company. Identify the
four principles of scientific management highlighted in above para sby
quoting the lines.

Suggested Answers:

Q.No. Answers Marks

1 B 1
2 C 1
3 B 1
4 A 1
5 1. Providing manager useful insight into reality 3
The organization teaches ……..practical aspects of business through them
2. Optimum utilization of resources
This is because the mangers……..through various principles of
management
3. Fulfilling social responsibility
The company has decided to donate…….to a nearby orphanage
6 1. Management principles are general guidelines 3
2. They have Universal applicability
3.Formed by practice and experimentation
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7 1. Providing manger useful insight to reality 3

2. Management training, Education and research
Meeting changing environment requirement
8 1. Unity of command 2. Equity 3.Discipline 4
With explanation
9 1. Order 2.Espirit de corps 3.Equity 4
With explanation
10 Principle of management is Initiative 6
Technique of scientific management differential piece wage system
With their explanation
11 1. Science not the rule of thumb 6
He continuously motivates his research and development dept. That new
and latest method of doing work must be explored
2. Harmony not discord
If this vehicle is to be driven in a right way then both the wheels should be
properly aligned.
3. Cooperation not individualism
Among his employees he has instilled the feeling that no decision will be
taken without consulting the subordinates
4. Development of each and every person to his/her greatest efficiency
and prosperity
Paying attention to the training is the secret of the company.

UNIT 3 -BUSINESS ENVIRONMENT

Q. Questions Marks
No.
1 Business environment is a group of ………………. Powers. 1
(a) Specific (b) General (c) Internal (d)Specific and general
2 1
Which of following is not included in special powers of business environment?
(a) Technical situations (b)Customers (c) Suppliers(d)Investors
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3 Indicate whether the following statements are ‘True’ or ‘False’ : 1

(i) Composition of family is an example of social environment.
(ii) More supply in the economy is an example of Social environment.
4 Which of following is available on time with help of study of environment? 1
(a) Government help (b)Foreign Aid (c)Warning signal(d)Material
5 Mr. Ajay after completing MBA from USA comes to India to start a new business 3
under the banner Ecom Creations Ltd. He launches a new product in e-learning
for Senior Secondary School students in Commerce stream, which already has a
established market in UK and USA but not in India. His business starts flourishing
in India. Now more Indian companies entered into the market with other
subjects also.
Identify and quote the lines from above para which highlight the
significance of understanding business environment.
6 Just after declaration of Lok Sabha Elections 2014 results, the Bombay stock 3
exchange’s price index (Sensex) rose by 1000 points in a day. Identify the
environmental factor which led to this rise giving reason. Also explain any two
other dimensions of business environment.
7 The court passed an order that all schools must have water purifier for the 3
school children as
(i) Society in general is more concerned about quality of life.
(ii) Innovative techniques are being developed to manufacture water purifier at
competitive rates.
(iii)Incomes are rising and children at home are also drinking purified water.
(iv) The government is also showing positive attitude towards the water purifier
business.
Identify the different dimensions of business environment by quoting from the
above details.
8 The Court passed an order to ban polythene bags as the bags are creating many 4
environmental problems which affect the life of people in general and society in
general is more concerned about quality of life.
 KVS – ZIET BHUBANESWAR 2023-24

The Government decided to give subsidy to jute industry to promote this

business.
Innovative techniques are being developed to manufacture jute bags at low
rates.
Incomes are rising and people can afford to buy these bags.
Identify the different dimensions of Business Environment by quoting the lines
from the above particulars.
9 Kapil Sharma is working as the Country Head of a company which owns a chain 4
of malls under the name of “Virtuoso” in the various parts of India. Through an
analysis report of the business environment, it has been brought to his notice
that in the coming years, shopping at a mall will not be a necessity for the buyers
as purchases can be made online from anywhere and at any time with ease and
at the consumer’s convenience. Hence, malls will have to provide much more
than shopping to be able to attract customers. So, he recommends that
“Virtuoso” malls should to be restructured into recreation centres, offering
more spaces to socialize, host events and concerts, and provide ample Food and
Beverages options.
Consequently the share of entertainment segment and Beverages segment in
the overall mall space is increased by 20%. As a result, the company gains
enormously by getting the first mover advantage.
In context of the above case:
1. Define the term “Business Environment”.
2. Explain the terms “Threats” and “Opportunities” by quoting lines from
The paragraph.

10 Over the years, e-business in our country has witnessed tremendous growth due 6
to several reasons. There is significant improvement in the Information
Technology infrastructure over the last decade as the Government has taken
important steps in high-speed Internet connectivity. As a result, the broadband
networks have not only become better but also more affordable. Additionally,
Government is trying to make rural India connected through broadband – a
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great possibility for e-business to expand the retail market by reaching out to
the most remote rural customer. Another catalyst strengthening the e- business
segment is the country’s favourable demography. It has more than 50% of its
population below the age of 25 and more than 65% below the age of 35. It is
expected that, in the year 2020, the average age of an Indian will be 29 years,
compared to 37 for China and 48 for Japan, this promises for phenomenal
increase in e-business. Moreover, the penetration of the smartphone in a large
section of the population has aptly addressed the problem of compute illiteracy.
Notwithstanding the fact that consumers also prefer e-business due to multiple
factors like convenience, time etc.
Identify and explain the various dimensions of business environment being
referred to in the above case.

11 Beni, after completing her MBA, took up a job in a multinational company 6

named “Fortio”. The company was paying good salary and perks to its
employees. The wages were within the paying capacity of the company that
provided the employees a reasonable standard of living. The company also had
a good work-culture and the behaviours of superiors was very good towards
their subordinates. Beni was very happy in this organization, but due to long
working hours she did not have time to cook her meals. She had to depend on
outside found, which was deteriorating her health.
She observed that this problem was faced by many of her colleagues, not only
in her company but also in many other companies. This was because of increase
in the number of working women and non-availability of hygienic home-cooked
food. She identified this as a great opportunity and decided to give up her job
to supply packaged home-cooked food to office goers at a reasonable price. At
the end of the day she also distributing the left-over food in the nearby night-
shelters.
(i) State the dimension of business environment being discussed above.
(ii) State the principle of management being followed by “Fortio”.
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Suggested Answers:

Q.No. Answers Marks

1 (d) 1
2 (a) 1
3 (i) True (ii) False 1
4 © Warning Signal
5 • “Comes to India to start a new business ... launches a new product in e- 3
learning for Senior secondary school students in Commerce stream.”
1. It helps in assisting in planning and policy formulation. 2. It helps the firm to
identify opportunities and get the first mover advantage.
• “His business starts flourishing in India.”
1. It helps in improving performance.
• “Now more Indian companies entered into the market with different
subjects also.”
1. It helps the firm to identify threats and early warning signals.
6 Rise in stock market index (Sensex) is economic environment. But Political 3
environment (declaration of Lok Sabha Elections 2014 results)) led to this rise.
Two other dimensions of business environment:
1. Legal Environment: 2. Technological environment:
7 1. Legal environment: 2. Social environment: 3. Technological environment: 4. 3
Economic environment: 5. Political environment:
8 1. Legal environment: 2. Social environment: 3. Political environment: 4. 4
Technological environment: 5. Economic environment:
9 The term „Business Environment‟ means the sum total of all individuals, 4
Institutions and other forces that are outside the control of a business
enterprise but that may affect its performance. 2. The term „threats‟ refers to
the external environment, trends and changes
that will hinder a firm’s performance.
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“Through an analysis report of the business environment, it has been brought

to his notice that in the coming years, shopping at a mall will not be a necessity
for the buyers as purchases can be made online from anywhere and at any
time with ease and at the consumer’s convenience. Hence, malls will have to
provide much more than shopping to be able to attract customers.”
The term „opportunities‟ refers to the positive external or changes that will
help a firm to improve its performance.
“As a result, the company gains enormously by getting the first mover
advantage.”
10 (i) Social environment which includes social forces like customs and traditions, 6
Values trends etc.
‘This was because of increase in the number of working women and non-
availability of hygienic home-cooked food.’
(ii) Remuneration of employees, which states that the overall pay and
Compensation should be fair to both employees and the organization.
‘The company was paying good salary and perks to its employees. The wages
were within the paying capacity...standard of living.’
(iii) Values being communicated by the company to the society are: (Any two)
1. Good work culture 2. Good behaviour inhuman interaction 3. Concern for
the employees 4. Respect for law
11 (i) Management is a dynamic function. 6
(ii) 1. Initiative
This principle indicates that the subordinates should be encouraged to give
suggestions and make and execute plans within the prescribed limits of
authority.
2. Spirit de corps
This principle suggests that management should promote a team spirit of unity
and harmony among the employees.
(iii) Benefits of business environment:
1. It helps in assisting in planning and policy formulation.
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„... Takes into account the changes taking place in business environment while
determining plans.‟
2. It helps in improving performance.
„He accepts changes readily and gives useful suggestions to his superior, which
results in reduction of costs. As a result, company’s profits increase.‟

UNIT 4 - PLANNING

Q. No. Questions Marks

1 Planning leads to rigidity is: 1
i. Method of planning
ii. Characteristic of planning
iii. Importance of planning
iv. Limitation of planning
2 What to do and how to do is concerned with: 1
i. Controlling
ii. Staffing
iii. Planning
iv. Directing
3 No smoking in the factory comes under : 1
i. Objectives
ii. Policies
iii. Methods
iv. Rules
4 Estimated cash inflows and outflows are: 1
i. Programme
ii. Procedure
iii. Budgets
iv. Rules
5 After completing B. Tech in electrical engineering, Rocky sets a unit to produce 3
LED bulbs. Due to government support for the project he is able to get
finance at a reasonable rate of interest. Rocky has the ability to foresee and
 KVS – ZIET BHUBANESWAR 2023-24

plan his operations very well. His company does well and needs to appoint a
manager to help him. Kishor joins his business as the production manager.
Kishor is very poor at planning the activities and does his work in a very
haphazard manner. Due to this their orders got delayed and customers started
to get dissatisfied. The goodwill earned by the Rocky over the years began to
decline.
On the basis of the given information about Rocky, answer the following
questions:
(a) Identify and explain the function of management which Kishor failed to
perform by quoting lines from the paragraph.
(b) Describe briefly any two features of the function of management as
identified in part (a).
6 Mrs. Sonu Dhaliwal, the Senior Manager of ‘Bharat Limited’ held a meeting 3
with the Sales Manager in order to fix the target of sales for the following year.
For this purpose she studied the sales trend of the previous 3 years. She came
to know the company’s sales were increasing at the rate of 20% every year. For
this she did the market survey also. From this she learnt that the main
competitor of the company was running in loss, was planning to enter some
other venture. Taking this information as base, Mrs. Dhaliwal doubled the
target from the previous year. All the Departmental Managers were directed
to make their respective preparations to achieve this target. The sales
manager kept a close watch over the sales rate of his company and the
activities of the competing company as well. After some time, she came to
know that the competing company was not leaving its current business, but
was planning for improvement in it. The General Manager called a urgent
meeting of all the Departmental Managers so as to make changes in his plans.
Identify the different stages of planning process described in the paragraph
given above. Quote the relevant lines to do so.
7 Ishu is the C.E.O. of Star Ltd. He in accordance with the other board members 3
decides to formulate a general statement which will be guiding the thinking of
 KVS – ZIET BHUBANESWAR 2023-24

employees. He further goes on to formulate many such statements in the next

six months. These statements could be divided into two categories.
(a) Identify and state the type of plan highlighted above.
(b) Also give two types of this plans.
8 New-generation limited is a company manufacturing governments. While 4
making its plane, the company takes into consideration the business
environment. It constantly adapts itself to changes in environment by making
changes in its plan. However, it becomes difficult for the managers of the
company to accurately foresee future trends in the environment. Competition
in the market upsets its financial plan; then sales targets have to be revised
and, accordingly cash budgets also need to be modified since they are based
on sales figures.
(a) Name and explain the limitation of planning highlighted in the above para.
(b) Identify and explain the two types of plans mentioned in the above para by
quoting the lines from it.
9 ABC Ltd. A mobile company is facing a problem of declining market share due 4
to competition from existing and new players in the market. The competitors
are introducing low-priced models for price-sensitive consumers. At the same
time, for quality conscious customers. The competitors are introducing new
models with added features.
Identify and explain the steps ABC Ltd. should use to gain its market share.
10 A company is manufacturing garments. The manager wants to increase profits 6
by purchasing new high speed machines or increasing the sale price or using
waste materials in manufacturing stuffed toys. He decided that "using waste
material" is the best solution for him.
(a) Identify the concept of management involved.
(b) Mention the steps involved in the above process by quoting the lines from
the question.
11 Suhasini, a home science graduate from a reputed college, has recently done a 6
cookery course. She wished to start her own venture with a goal to provide
‘health food’ at reasonable prices. She discussed her idea with her teacher
 KVS – ZIET BHUBANESWAR 2023-24

(mentor) who encouraged her. After analysing various options for starting her
business venture, they short listed the option to sell ready made and ‘ready to
make’ vegetable shakes and sattu milk shakes. Then, they weighed the pros
and cons of both the short listed options.

1. Name the function of management being discussed above and give any
one of its characteristics.
2. Also briefly discuss any four limitations of the function discussed in the
case.

Suggested Answers:

Q. Answers Marks
No.
1 iv) Limitation of planning 1
2 (iii) Planning 1
3 (iv) Rules 1
4 iii) Budget 1
5 (a) PLANNING. Quoting lines: “Kishor is very poor………….haphazard manner” 3
Features:
(i) pervasive (ii) goal oriented
6 . (i) Developing premises and Setting objectives 4
“Taking, this information as base…….from the previous year”
(ii) Implementing Plans
“All the Departmental Managers …….to achieve this target.”
(iii) Follow up
“After some time……..improvement in it.”

7 (a) Policy 4
(b) (i) Major (ii) Minor
 KVS – ZIET BHUBANESWAR 2023-24

8 (a) Planning may not work in a dynamic environment 4

(b) (i) strategy (ii) Budget

9 Strategy explanation
10 a) planning 5
(b) steps of planning or planning process
11 Planning involves decision-making 5

The limitations of planning are described below:

1. Planning may not work in a dynamic environment

2. Planning reduces creativity
3. Planning involves huge costs
4. No guarantee of success

Unit 5 : ORGANISING

Q.N QUESTION MARKS

O.
1 Roles and duties of each member are clearly defined which helps in avoiding 1
confusion and duplication of work and efforts in informal organization. (T/F)
2 For effective administration, organizing is the primary function. (T/F) 1
3 Organizing clarifies ________ and _________ for results and logical grouping of 1
activities. authority and responsibility
4 Selective dispersal of authority leads to _______. 1
5 Rishabh has joined as creative head in an entertainment company. He always 1
ensures that the work has been divided into small and manageable activities
and also the activities of similar are grouped together. Identify the related step
in organizing process mentioned here.
(a) Identification and division of work
 KVS – ZIET BHUBANESWAR 2023-24

(b) Departmentalization
(c) Assignment of Duties
(d) Establishing Reporting Relationships
6 Which of the following is not a demerit of informal Organization? 1
(a) It leads to spreading of rumors.
(b) It gives more importance to structure and work.
(c) It may restrict implementation of changes.
(d) It puts psychological pressure on members to conform to group
expectations, even if they are against the firm.
7 Being answerable to the final outcome is a phrase which can be associated with: 1
(a) Authority
(b) Duty
(c) Responsibility
(d) Accountability
8 ‘It is a process by which managers brings order out of chaos, removes conflicts 1
among people over work and creates an environment suitable for teamwork.’
Identify it.
9 Sunidhi is a simple girl, who has recently joined an IT company in Pune. She 1
often observes that most of her colleagues go for a party on weekends with
their boss. Identify the type of organization being described in above lines.
10 Soumya runs a chain of low cost fashion wear outlets in various parts of the 1
country. As the taste and preference of people vary from one region to another,
she hires competent, capable and resourceful managers and gives them an
opportunity to work independently at local level. At the same time they are
expected to assume the responsibility for effective implementation of their
decisions with regard to various aspects like colour, texture, design etc. Related
to the garments. Identify the concept.
11 Shine spices Ltd.’ are the manufactures of different food spices like Rajmaah 1+1+1=
masala, chhole masala, paav bhazi masala etc. Mr. Raghav the owner of the 3
company has created different departments like purchase, production,
marketing etc. There are 30 employees working in the organisation. Mr. Raghav
 KVS – ZIET BHUBANESWAR 2023-24

believes that effective planning is of paramount importance and can help to

achieve organisational objectives. In order to make employees focus on
objectives, he issued orders that during working hours only official matters will
be discussed. He made certain rules and code of conduct for the employees,
according to which employees are not allowed to visit and talk to the employees
of other departments except for official work. He emphasised on work
performance.
 Identify and name the type of organisation mentioned in above para.
 State one feature of the concept identified in part (1) above.
 What was the purpose behind the formulation of the rules for the
employees that restricted the personal communication?
12 You are working in HR department. Day-by-day you are facing problems due to 3
existence of informal groups. What steps would you take to manage such
informal groups?

13 The manager of M Ltd. Is overburdened with the work and is unable to 3

concentrate on core issues of the company. To overcome this problem, he
entrusted some of his authority to his immediate subordinate to share some of his
routine work.

1. Which concept is used by the manager?

2. It is an extension of one of the principles of management, Name the
principle.
3. Give one benefit of the concept identified in part (1) above
14 Atul joins as a Regional Sales Head in the export division of a FMCG (fast moving 1+1+1+
consumer goods) company. In a departmental meeting, he asks one of his 1=4
subordinates, Manik, to take charge of the company’s new office in Dubai. He
allocates the work to him and grants the necessary authority. However, within a
month by seeking regular feedback on the extent of work accomplished from
Manik, Atul realises that Manik is not doing the work as per his expectations. So
he takes away the authority delegated to him and re delegates the work to
Prakrit. Due to the time wasted in this switch over, the work at the Dubai office
 KVS – ZIET BHUBANESWAR 2023-24

suffers tremendously and the company is not able to meet its desired goals.
In context of the above case:

 Why is Manik supposed to give regular feedback about work to Atul?

 Can the authority granted to a subordinate be taken back and re-

delegated to another person?

 Can Manik be held responsible for not meeting the work related
expectations of Atul? Give a suitable reason in support of your answer.

 Differentiate between authority, responsibility and accountability on the

basis of origin.
15 After completing a course in travel and tourism, Karan started his own travel 4
agency. In order to ensure smooth functioning of his business, he decided to
create fourteen job positions divided into four departments on the basis of
functions namely, front office department including online queries, reservations
department for airways, railways and roadways, accommodation booking
department, and securing payments department. In order to avoid any
interdepartmental conflicts he decides to specify clearly the lines of authority and
areas of responsibility for each job position.

In the context of the above case:

A) Which function of management is being described in the above lines?

B) Identify the framework created by Karan within which all managerial and
operating tasks are to be performed in his organization.

C) Name the type of the framework as identified in part (a) of the question.
Also, give any two of its advantages.

16 Ishita works as a corporate event coordinator in an event management company. 6

She has been made an overall official in charge for organizing a painting
exhibition for one of the clients of the company. For ensuring that the exhibition
takes place successfully, she identifies the various activities involved and divides
the whole work into various task groups like marketing committee, decoration
 KVS – ZIET BHUBANESWAR 2023-24

committee and reception committee. In order to facilitate coordination within and

among committees, she appoints a supervisor of each group. Each member in the
group is asked to report to their respective supervisor of each group. Each
member in the group is asked to report to their respective supervisors and all the
supervisors are expected to work as per Ishita’s orders.

In context of the above case:

A) Identify the function of management being performed by Ishita.

B) Describe briefly the various steps involved in the performance of the

function of management as identified in part (A) of the question.

Suggested answers

Q.NO. ANSWER MARKS

1 False 1
2 False 1
3 authority and responsibility 1
4 Decentralization 1
5 B) Departmentalization 1
6 B) It gives more importance to structure and work. 1
7 D) Accountability 1
8 Organizing 1
9 Informal Organization. 1
10 Decentralization. 1
11 1. Formal Organization 1+1+1=3
2. Focus on objective and work performance
3. Avoidance of emergence of informal organization which may obstruct
the fulfillment of organizational goals.
12 Following steps should be taken to manage such informal groups: 3

1. Management should use group based approaches for decision

making and conflict handling.
 KVS – ZIET BHUBANESWAR 2023-24

2. Management should ensure that informal groups follow the rules,

laid down in an organisation

3. Managers should assist informal groups for the betterment of

organisation
13 1. Delegation of authority 3
2. Division of work
3. Motivation to employees
14  Manik is supposed to give regular feedback about work to Atul as 1+1+1+1
he has been granted authority and entrusted responsibility, so =4
he remains answerable for the outcome.

 Yes, the authority granted to a subordinate can be taken back

and re-delegated to another person.

 Yes, Manik can be held responsible for not meeting the work
related expectations of Atul as it is the obligation of a
subordinate to perform the assigned duty to the best of his
ability and skill.

4. Authority arises from the job position of person in the

organization, responsibility originates from authority and accountability
originates from responsibility
15 A) The Organizing function of management is being described in the 4
above lines.

B)Organizational structure is the framework created by Karan within

which all managerial and operating task are to be performed in his
organization.

C)Karan has created a functional structure as job positions are

divided into four departments on the basis of functions namely, front
office department including online queries, reservation department
for airways, railways and roadways, accommodation booking
department, and securing payments department.
 KVS – ZIET BHUBANESWAR 2023-24

The two advantages of functional structure

16 A) The Organizing function of management is being performed by 6

Ishita.

B) The steps involved in the process of organizing are as follows:

1.Identification and division of work: It means identifying various

activities to be done and dividing those activities in to sub tasks
keeping in mind the qualification, experience and skills required to do
those tasks.

2.Departmentalisation: It involves grouping of activities which are

similar in nature. This process is called departmentalization.
Departments can be created on the basis of products and functions.

3.Assignment of Duties: Jobs are allocated to individuals according

to their knowledge and skill. There should be proper match between
the nature of job and the ability of an individual.

4.Establishing Reporting Relationships: In order to perform the

duties assigned, it is necessary that some authority is granted for the
same. Each employee has some authority as well as responsibility. It is
necessary that every individual must know whom he has to take orders
from and to whom he is answerable. This creates superior- subordinate
relationship.

CHAPTER 6 : STAFFING

Q. NO. QUESTION MARKS

1 In internship training, the trainee learns under the guidance of master 1
trainer. (True/False)
2 Under which source of recruitment do employees get motivated? 1
(a) Internal
(b) External
 KVS – ZIET BHUBANESWAR 2023-24

(c) Both
(d) None of the above

3 Expense on training is a waste. (True/False) 1

4 From which source of recruitment do we get Badli or casual 1

Employee?

(a) Direct Recruitment

(b) Casual Callers

(c) Media Advertisement
(d) Employment Exchange

5 Providing the candidate, the post, for which he is selected is 1

called………………..
6 1
Which of the following is not an external source of recruitment?
(a) Casual Callers
(b) Advertisement
(c) Promotions
(d) Recommendations of Employees

7 Why is ’employment interview’ conducted in the process of 1

selection?
8 When does the Personnel Manager act as the Line Manager? 1

(a) When he completes the job of staffing as part of functional

area of management

(b) When he performs the function of staffing as a function of

management
(c) In both the above situations
(d) He never acts as the Line Manager
 KVS – ZIET BHUBANESWAR 2023-24

9 What stage does the requisition of employees occupy in the process 1

of recruitment?

(a) First

(b) Second
(c) Third
(d) Fourth

10 NKG Pvt. Ltd. is a company engaged in the marketing of water 1

purifiers. As their product is in great demand, the employees in the
marketing department are always racing against time. The employees
have to work over time. So the company decided to search for new
workers and took recommendations from present employees.
(a) Identify the function of management being performed by the
company in the above situation.
(b) Name the source used by the company to put people to jobs.

11 Rama Ltd. is engaged in the marketing of air conditioners. To meet the 1.5+1.5=3
increasing demand of their product, they decided to start a new plant.
They assessed the type and the number of employed required and
they took the help of advertising in the local news-paper to attract the
prospective employees.
Explain the next two steps that they have to undertake to fulfil the
requirement of quality workforce.
12 Joseph Bros is a firm manufacturing jute lampshades. It uses leftover 3
jute pieces from various jute factories to manufacture economical
lampshades which are supplied to various hotels in nearby towns. It
employs men and women from nearby villages as workers for creating
good lampshade designs. Joseph Bros, is not able to meet its targets.
Namish, the supervisor of the company, was told to analyse the
reasons for the poor performance. Namish found the following
problems and suggested certain solutions in the working of the
 KVS – ZIET BHUBANESWAR 2023-24

business. The number of workers employed was less than what was
required for the work. As a result, the existing workers were
overburdened. The firm decided to search for new workers and it
asked the present employees to introduce candidates or recommend
their friends and relatives to the firm. This enabled the firm to ‘put
people to jobs’ and assured the attainment of objectives according to
plans.

1. Identify the functions of management being performed by the

firm in the above situation.
2. Name the concept and its source used by the firm to attract
more workers for the firm.
3. State any two values being followed by Jacob Bros.

13 Ganesh was concerned about the sedentary lifestyle people are 3

leading nowadays. Their dependency on outside food is also
increasing because corporate work culture demands working till late
night at offices. So, he decided to start a restaurant, ‘Healthy Eating
Point’ to provide healthy food options to customers. After completing
planning and organising functions, he identified the various job
positions that are required to be filled i.e. a General Manager, an
Accountant, two Chefs, two boys for serving the food in the restaurant
and three boys for home delivery of food. He decided that his father,
Karan, would be the General Manager of the restaurant. He would be
paid Rs.50,000 per month for his services. His father requested him to
appoint his friend’s son, Prem as an accountant who is well qualified
for this post. Ganesh agreed to this proposal. Earlier, Prem had a
business of providing unskilled workers to different organisations from
remote areas of the country. Prem took permission from Ganesh to
continue with the old business. Ganesh happily agreed and asked him
to provide five boys for serving and delivering the food. For the
appointment of the two Chefs, Ganesh approached a renowned Hotel
 KVS – ZIET BHUBANESWAR 2023-24

Management Institute and was satisfied with the Chefs provided by

the institute.
Quoting the lines from the above paragraph, explain any two sources
of recruitment being used by Ganesh for filling up the various job
positions.
14 After passing his secondary school examination, David left the school 4
at the age of 15 years and started getting training under his father. His
father, a renowned electrician, had worked for many companies. He
everyday started accompanying his father on work and watched him
carefully while working. David was a good learner and learnt the
techniques of work quickly. Now his father started passing on the
tricks of the trade to David. With the passage of time David acquired a
high level skill and became a
Well-known electrician at Indore. Big business-houses started calling
him for electrical -wiring.
(a)Name the method of training discussed in the above para.
(b) State any two benefits which David could get on being trained.
15 Mr. Murthy is the Human Resource Manager of Jai Hind Hospital in 4
Vellore. He has to appoint nurses for the hospital. Since patients in the
hospital are of different types, he wants to find out the candidates’
maturity and emotions in dealing with the patients. He also wants to
know about the candidates’ ability to make decisions.
Explain two types of tests thatMr. Murthy can use to meet his
requirements.
16 Narsimha belongs to a small village in Varanasi. Being the only literate 6
person in his immediate family, he decides to settle in a city. So he
opens a sweets shop in Chandni Chowk, Delhi as he possesses
extraordinary culinary skills. Very soon he starts getting requests from
his cousins in the village to engage them in some kind of job in his
business. Considering it to be his moral obligation, he engages five of
his cousins in his business without paying any specific attention to
 KVS – ZIET BHUBANESWAR 2023-24

their individual capabilities. This leads to wastage of materials, time,

effort and energy, resulting in lower productivity and poor quality of
products. As a result, the profitability of his business starts falling.
Soon, he realised that for the success of the business it is essential
that right kind of people must be available in right number at the right
time.
In the context of the above case:
(a) Identify and explain the function of management that has been
overlooked by Narsimha .

(b) Describe briefly the importance of the function of management

as identified in part (a).
17 Joseph Bros is a firm manufacturing jute lampshades. It uses leftover 5
jute pieces from various jute factories to manufacture economical
lampshades which are supplied to various hotels in nearby towns. It
employs men and women from nearby villages as workers for creating
good lampshade designs.
Joseph Bros, is not able to meet its targets. Namish, the supervisor of
the company, was told to analyse the reasons for the poor
performance. Namish found the following problems and suggested
certain solutions in the working of the business. The number of
workers employed was less than what was required for the work. As a
result, the existing workers were overburdened. The firm decided to
search for new workers and it asked the present employees to
introduce candidates or recommend their friends and relatives to the
firm. This enabled the firm to ‘put people to jobs’ and assured the
attainment of objectives according to plans.

1. Identify the functions of management being performed by the

firm in the above situation.
 KVS – ZIET BHUBANESWAR 2023-24

2. Name the concept and its source used by the firm to attract
more workers for the firm.

State any two values being followed by Jacob Bros.

CHAPTER 6 : STAFFING

ANSWERS

Q. NO. ANSWER MARKS

1 False 1
2 A 1
3 False 1
4 A 1
5 Placement. 1
6 Promotion 1
7 An employment interview is a formal, in-depth conversation 1
conducted to evaluate the applicant’s suitability for the job in the
process of selection. At the same time the interviewee may also seeks
information from interviewer (if needed).
8 B 1
9 A 1
10 (a) Staffing 1
(b) External source of recruitment (recommendation of the
employees)
11 1. Selection is a process of choosing from among the pool of 1.5+1.5=3
prospective job candidates developed at the stage of recruitment.
2. Placement and orientation refers to employees occupying the
position or post for which the person has been selected and
introducing the selected employees to other employees and
familiarizing him with the rules and policies of the organization .
 KVS – ZIET BHUBANESWAR 2023-24

12 1. The ‘Staffing’ function of management is being performed by 3

the firm.
2. Recruitment is the concept used by the firm to attract more
workers to the firm.
The firm is planning to use the external source of recruitment i.e
‘Recommendation of present employees’ to attract more
workers to the firm.
3. The two values that are being followed by Jacob Bros are:
 Generating employment
 Optimum utilisation of resources.

13 Sources of recruitment being used by Ganesh for filling up the various 3

job positions are: (Any two)
(i)Recommendation of employees
‘His father requested him to appoint his friend’s son, Prem as an
accountant who is well qualified for this post’
In this source of recruitment, applicants are introduced by present
employees or their friends and relatives. Such employees are likely to
be good employees as their background is sufficiently known.
(ii) Labour Contractors
‘Earlier, Prem had a business of providing unskilled workers to
different organisations from remote areas of the country’
It is a source of recruitment in which the labour contractor maintains a
close contact with the labourers and can provide the required number
of unskilled workers at short notice.
(iii) Campus Recruitment
‘For the appointment of the two Chefs, Ganesh approached a
renowned Hotel Management Institute and was satisfied with the
Chefs provided by the institute’
It is a source of recruitment in which organisations maintain a close
liaison with educational institutions like universities, vocational
 KVS – ZIET BHUBANESWAR 2023-24

schools and management institutes to recruit qualified personnel for

technical, professional and managerial jobs.
14 .(a) Apprenticeship Training 3
(b)Benefits which David could get on being trained: (Any two)
(i) It may lead to his promotion and career growth due to improved
skills and knowledge.
(ii) It will help him to earn more due to improved performance.
(iii) It will reduce accidents as he will be more efficient to handle
machines.

(iv) It will increase his satisfaction and morale.

15 Two types of tests that Mr Murthy can use to meet his requirements 3
are:
(i) Personality Test
It provides clues to a person’s emotions, reactions, maturity, value
systems etc. They probe the overall personality and are difficult to
design and implement.
(ii) Intelligence Test

It measures the level of intelligence quotient of an individual. It is an

indicator of a person’s learning ability or the ability to make decisions
and judgments.
16 1. Staffing is the function of management that has been 6
overlooked by Nakul.
Staffing is the process of manning the roles designed into the
organisational structure. It is concerned with obtaining,
utilising and maintaining a satisfactory and satisfied work
force.
2. The importance of the staffing function of management is
described below:
 It helps in discovering and obtaining competent personnel
for various jobs within an organisation.
 KVS – ZIET BHUBANESWAR 2023-24

 By putting right person on the right job, it leads to a

higher performance of the employees.
 It ensures the continuous survival and growth of the
enterprise through the succession planning for managers.
 It helps to ensure optimum utilisation of the human
resources. By avoiding over manning, it prevents under-
utilisation of personnel and high labour costs. At the same
time it avoids disruption of work by indicating in advance
the shortages of personnel.
 It improves job satisfaction and morale of the employees
through objective assessment and fair rewarding for their
contribution.
17 1. The ‘Staffing’ function of management is being performed by the 6
firm.
2. Recruitment is the concept used by the firm to attract more
workers to the firm.
The firm is planning to use the external source of recruitment i.e
‘Recommendation of present employees’ to attract more workers
to the firm.
3. The two values that are being followed by Jacob Bros are:

 Generating employment
 Optimum utilisation of resources.

CHAPTER 7 : DIRECTING

Q.NO. QUESTION MARKS

1 In autocratic leadership style only ---------------communication is done 1
with subordinates.
2 There are many theories of leadership---------and-------------. 1
3 A …………..need can no longer motivate a person. 1
 KVS – ZIET BHUBANESWAR 2023-24

4 Obstruction or hindrance to communication like poor telephone 1

connection, inattentive receivers etc. are termed as--------------.
5 Other functions of management prepare a setting for action, while 1
________ function initiates action.

6 Stability of income is an example of Basic Physiological Needs. 1

(True/False)

7 Productivity linked wage incentives include regular increments in the 1

pay every year and enhancement of allowances from time-to-time.
(True/False)

8 If there is two way information flows between the superior and 1

subordinate then there will be positive reaction of employees.
(true/False)
9 Leadership never determines the ability of an individual to influence 1
others.

10 Some managers may be effective leaders without ever having taken a 1

course or training program in leadership.

11 Payal is the Chief Executive Officer of a reputed company. She 1.5+1.5=

introduced appropriate skill development programmers’ and a sound 3
promotion policy for the employees of her company. To motivate and
retain the best talent in the company, she designed the jobs of the
managers which include greater variety of work content. Identify and
explain the two incentives introduced by payal to motivate the
employees of the company.
12 Lakhan, an expert in the area of Financial Management, sent an e-mail 3
to his subordinate Thomas about a new project for a client in France.
Though, the mail was in English, a language known to Thomas, he was
not able to understand the actual meaning of many words used in the
mail. He was also not a specialist in the field of Financial Management.
Not only this, some portions of the mail were translated from French to
 KVS – ZIET BHUBANESWAR 2023-24

English in such a manner that many mistakes crept in, causing different
meaning to the message.
(a) Identify two specific barriers to communication in Lakhan’s e-mail.
(b) State any two measures which can be taken by Lakhan to overcome
the barriers identified in part (a) above to improve in future the
effectiveness of his communication.
13 A company has employees from different countries. They speak 1+1+2=4
different languages. Once the management decided to draft the
message of congratulating the employees of the New York in their
native languages. For this they had to translate the same message in
different languages. On the 5th of January there was a strike by people
belonging to a particular country showing resentment on the wrong
language used in the greetings.
(a) Identify and state the communication barrier discussed above.
(b) State the category of this communication barrier.
(C )Explain any two other communication barrier of the same
category.
14 Kunal joined as a shop level manager in the Production department of a 4
textile company in the year 2005. Because of his good work, he became
the Deputy Production Manager of the company in the
year 2010. He had status and prestige and was well respected by all in
the company. On 1st March, 2019, he was promoted as the General
Manager of the company. Kunal was very happy on his promotion as
now he had become what he was capable of becoming. As a good
manager, Kunal decided to motivate his subordinates, after
understanding the Need Hierarchy theory which is based on various
assumptions. He realised that people’s behaviour is based on their
needs and the manager can influence the behaviour of his employees
by satisfying their needs.
(a) One of the assumptions of Need Hierarchy theory is stated in the
above paragraph. State the other three assumptions of this theory.
 KVS – ZIET BHUBANESWAR 2023-24

(b) State the needs of Kunal which are being satisfied through
promotion.
15 Arun is working in a multinational company in Gurgaon. He was running 2+3=5
temperature for the last many days. When his blood was tested, he was
found positive for dengue with a very low platelet count. Therefore, he
was admitted in the hospital and a blood transfusion was advised by
the doctors. One of his colleagues sent a text message about it to his
immediate superior ‘Mr. Narain’. ‘Mr. Narain’ in turn sent a text
message to the employees of the organisation requesting them to
donate blood for Arun. When the General Manager came to know
about it, he ordered for fumigation in the company premises and
cleanliness of the surroundings.
(a) From the above para quote lines that indicate formal and informal
communication.
(b) State any three features of informal communication.
16 ‘Alfa Ltd.’ was dealing in renewable energy. To get the business, the 5
team leader and his team used to travel to different states to give
presentation to their clients. As per the policy of the company, the
leader used to travel by air, whereas his team travelled by road/train. It
was not only time consuming but also at time forced female team
members to travel alone.
As a result, the subordinates were not acting in desired manner to
achieve organisational goals. The CEO came to know about it. He called
the team leader, discussed the matter with him and decided to change
the travel policy of the company. It was decided that all the members
including the leaders would travel together in future and would usefully
utilize the travelling time in discussion with the subordinates about
presentation to be given to the clients. This made a positive impact and
every member of the team started acting in a manner as desired by the
team leader.
 KVS – ZIET BHUBANESWAR 2023-24

State the features of the element of the function of management used

by the CEO.

Suggested Answers

Q.NO. ANSWER MARKS

1 One way 1
2 Behaviour and Styles 1
3 Satisfied 1
4 Noise 1
5 Directing 1

6 False 1

7 False 1

8 True 1
9 False 1

10 True 1

11 Job Enrichment and career advancement opportunity with explanation 1.5+1.5

=3
12 Two specific barriers to communication in Lakhan’s e-mail were: 3
(i) Faulty translations
(ii) Technical jargon
Measures to overcome communication barriers: (Any two)
(i) Lakhan should communicate according to the needs, education and
understanding levels of subordinates.
(ii) He should take a proper feedback to improve the communication
process and make it more responsive.
(iii) He should regularly follow up communication and review the
instructions given to subordinates.
(iv) He should be aware of languages, tone and content of the message to
make it understandable to the receiver.
 KVS – ZIET BHUBANESWAR 2023-24

13 (a) Faulty Translation and its meaning 1+1+2=

(b) Semantic Barriers 4
(c) words with different meaning, Unclarrified assumption/ Technical
jargon
14 (a) The following are the assumptions of Maslow’s Need Hierarchy theory 4
other than the one discussed above:
(i) People’s needs are in hierarchical order, starting from basic
needs to other higher level needs.
(ii) A satisfied need can no longer motivate a person; only next
higher level need can motivate him.
(iii) A person moves to the next higher level of the hierarchy only
when the lower need is satisfied.
(b) Needs of Kunal which are being satisfied through promotion are:
(i) Esteem Needs which refer to the need for self-respect, autonomy status,
recognition and attention.
(ii) Self actualisation needs which refer to the drive to become what one is
capable of becoming. These needs include growth, self- fulfillment and
achievement of goals.
15 (a) Formal communication 2+3=5
‘When the General Manager came to know about it, he ordered for
fumigation in the company premises and cleanliness of the surroundings.
Informal communication
One of his colleagues sent a text message about it to his immediate superior
‘Mr. Narain’.
OR
‘Mr. Narain’ in turn sent a text message to the employees of the
organisation requesting them to donate blood for Arun’.
(b) Features of Informal communication: (Any two)
(i) It takes place without following the formal lines of communication.
(ii) It arises out of social needs of the employees
(iii) It spreads rapidly.
 KVS – ZIET BHUBANESWAR 2023-24

16 Features of motivation: 5
(a) It is an internal feeling as the urges, drives or needs of human beings
which influence human behaviour are internal.
(b) It produces goal directed behaviour as it stimulates people to
accomplish desired goals.
(c) It can be positive in the form of positive rewards or negative like
punishment, stopping increments etc.
(d) It is a complex process as any type of motivation may not have a uniform
effect on all the members.

CHAPTER: CONTROLLING

Q. NO. QUESTION MARKS

1 Planning is perspective whereas controlling is___________. 1

2 Controlling creates an atmosphere of _____ and _______ in the 1

organization.

3 Controlling can be used to _______ the performance of employees. 1

4 A good control enables the management to verify whether the standards 1

set are ________ and____________ .

5 ______ function of management helps in formulation of future plans in the 1

light of the problems that were identified in the past.

6 Critical point control focuses on ___________ 1

(a) Every task

(b) Financial areas

(c) Key result areas

(d) Planning areas

 KVS – ZIET BHUBANESWAR 2023-24

7 Measurement of employees’ performance can be done by 1

______________.

(a) Increasing the market share of the company

(b) Gross profit ratio

(c) Return on investment

(d) Performance report

8 Which one of the following is not the step in the process of controlling? 1

(a) Measurement of actual performance.

(b) Establishing reporting relationship.

(c) Setting performance standards.

(d) Taking corrective action.

9 Among the following, which one standard can be maintained in 1

Marketing?

(a) Cost

(b) Flow of Capital

(c) Advertising Expenditure

(d) Liquidity.

10 “Controlling is required at all the levels of management”. Which feature is 1

highlighted in the above statement?

(a) Dynamic

(b) Contingent

(c) Pervasive
 KVS – ZIET BHUBANESWAR 2023-24

(d) Continuous

11 Isha Machines is engaged in manufacturing machine components. The 2+1=3

target production is 200 units daily. The company had been successfully
attaining this target until two months ago. Over the last few months it has
been observed that daily production varies between 150-170 units.
Identify the possible causes for the decline in production and the step to
be taken to achieve the desired targets.
12 If anything goes wrong with the performance of key activities, the entire 3
organization suffers. Therefore, the organization should focus on them’.
Explain the statement with suitable example.
13 Rajeev and Sanjeev are managers in the same organisation heading 4
different units. While discussing about the functions of management,
Rajeev says that ‘Planning is looking ahead whereas controlling is looking
back.’ But Sanjeev says, ‘You are wrong because planning is looking back
whereas controlling is looking ahead.’ Both are giving reasons in favour of
their statements. Explain the possible reasons given by both and justify
who is correct.
14 Vinber Ltd. set up a manufacturing unit at Bhiwadi at Himachal Pradesh to 4
manufacture electric geysers and supply them to dealers all over the
country. Their production target was 500 geysers per week. It was decided
by the management that variation in production upto 10 units would be
acceptable.
At the end of the first week, the production was 450 geysers. The next
week, production increased to 470 geysers. A week later, production was
460 geysers. On investigation, it was found out that fluctuation in
production was due to irregular supply of electricity.
(a) The above para discusses some of the steps of one of the functions of
management. Explain the steps.
(b) Also, state the step(s) not discussed in the above para.
15 A critical point control (CPC) approach is followed by McDonald in the 1+2+2=5
cooking and handling process so that any food safety threat can be
 KVS – ZIET BHUBANESWAR 2023-24

prevented, eliminated, or reduced to an acceptable level. Hence,

continuous monitoring of activities are undertaken to ensure that the
process is right at each critical point control. The main principle followed
for cooking at McDonald is “less amount many time” which can ensure the
high quality and high fresh level of the food. For instance, if your
hamburgers have to be made, a worker cannot cook all the four
hamburgers at one time. The time figured out for making one hamburger
is one hundred and forty-five seconds. Moreover, nearly all foods in the
McDonald have the specific holding time, the holding time for hamburgers
is ten minutes and for French fries is seven minutes. If it is not sold within
that time it is thrown away. Also, the temperature of the milk sent by the
supplier must be under 40 c, otherwise, it will be returned.
In context of the above case:
1. Name the steps involved in the controlling process which are being
discussed in the above lines.
2. What do you understand by ‘critical point control’? Explain.
3. How does the controlling function of management help in accomplishing
organizational goals and ensure efficient use of resources?
16 Vikas was the Chief Operating Officer of ‘Yalet Ltd.’, a company providing 5
advanced software solutions to Indian Defence Services. They had been
carrying on business successfully for the last twelve years and earning
enough profits. But from the last one year, they realised that though the
business is getting big orders which are being fulfilled in time, even then
the revenues kept on decreasing. Vikas was
not able to find out where the problem was. He started keeping a close
check on the progress of activities as he could sense that something was
wrong. He wanted to take some action before any major damage could be
done to the business. Vikas appointed a cyber-security expert who
monitored the company’s processes and found out that the computer
operator was deleting the entries from the computers and pocketing the
revenues. He was caught and handed over to the police. This created an
 KVS – ZIET BHUBANESWAR 2023-24

atmosphere of order and discipline in the organisation and helped in

minimizing dishonest behaviour on the part of the Employees.
(a) Identify the function of management highlighted in the above
paragraph.
(b) Explain any four other ways in which this function of management may
help the organisation.

Suggested Answers

Q.NO. ANSWER MARKS

1 Evaluative 1
2 Order and discipline 1
3 Appraise 1
4 Accurate , objective 1
5 Controlling 1
6 C 1
7 D 1
8 B 1
9 C 1
10 C 1
11 The possible causes for decline in production are listed below: 2+1=3

 The workers are not well versed with the production process.
 The working environment is not conducive to efficient working.
 The raw materials and other equipment are not available on
time.
 The machinery is defective or has become obsolete.
The deviations require immediate management attention so that-
they do not reoccur in future. Therefore, the manager should take
appropriate corrective action after analyzing the situation like
providing training to workers, improving the work environment,
 KVS – ZIET BHUBANESWAR 2023-24

ensuring timely availability of the raw materials and other equipment

or replacing the machinery.
12 The given statement refers to the importance of ‘Critical Point 3
Control’ in order to ensure effective performance of key activities in
an organisation.
Critical Point Control: it may be neither economical nor easy to
monitor each and every activity in the organisation. Therefore, every
organisation identifies and states its specific Key Result Areas (KRAs)
or critical points which require tight control and are likely to have a
significant effect on the working of the business. Any deviations on
these points are attended to urgently by the management. For
example, if in an organisation, the expenditure on stationery goes up
by 10%, it can be ignored but if the production cost goes up by 5%, it
may call for managerial action
13 Both Rajeev and Sanjeev are correct in their statements as explained 4
below:
 Planning is considered as a forward looking function by Rajeev as
plans are made for future.
 Planning may be considered as a backward looking function by
Sanjeev because the quality of planning can be improved with the
help of valuable information provided by controlling in terms of
results achieved.
 Controlling is considered as a backward looking function by
Rajeev as it is like the post mortem of the past activities to
ascertain the deviations if any.
 Controlling is considered as a forward looking function by Sanjeev
as it helps to improve the future performance by providing
guidance for taking corrective action so that deviations do not
reoccur in future.
14 (a) Steps in the process of controlling discussed in the above case: 4
(i) Setting performance standards
 KVS – ZIET BHUBANESWAR 2023-24

(ii) Measuring actual performance

(iii) Comparing actual performance with standards and Analysing
deviations
(b) Step not discussed in the above para:
Taking corrective action if deviations go beyond the acceptable limits.
15 1. Analyzing deviation and taking corrective action are being discussed 1+2+2=5
in the above lines.
2. Since it may neither be economical nor easy to monitor each and
every activity in the organization, there for every organization
identifies and states its specific key result area (KRAs) or critical points
which require tight control are likely to have a significant
effect on the working of the business. Any deviations on these points
are attended to urgently by the management.
3. Explanation of following points of importance of controlling
function:
1. Accomplishing organizational goals
2. Making efficiently use of resources
16 (a) Controlling. 5
(b) Other ways in which this function may help the organization : (Any
four)
(i) Accomplishing organisational goals.
(ii) Making efficient use of resources.
(iii) Improving employee motivation.
(iv) Judging accuracy of standards.
(v) Facilitating co-ordination in action.
 KVS – ZIET BHUBANESWAR 2023-24

Chapter: 9 - FINANCIAL MANAGEMENT

Q. ANSWER MARKS
NO.
1 The cheapest source of finance is: 1
(a) Debenture
(b) Equity share capital
(c) Preference shares
(d) Retained earnings

2 Other things remaining the same, an increase in the tax rate on corporate 1
profits will:
(a) Make the debt relatively cheaper
(b) Make the debt relatively the dearer
(c) Have no impact on the cost of debt
(d) We can’t say

3 Financial leverage is called favourable if : 1

(a) Return on investment (ROI) is lower than the cost of debt
(b) ROI is higher than the cost of debt
(c) Debt is easily available
(d) If the degree of existing financial leverage is low

4 Higher debt-equity ratio results in: 1

(a) Lower financial risk
(b) Higher degree of operating risk
(c) Higher degree of financial risk
(d) Higher EPS

5 Match the columns 1

(A)
(B)
1.ROI is more than the Rate of interest on debt (a) Unfavourable
financial leverage
2. ROI is less than the rate of interest on debt (b) Trading on equity
3. Objective of financial management (c) Funds available at
right time
4. Objective of Financial planning (d) Maximize
shareholder’s wealth
 KVS – ZIET BHUBANESWAR 2023-24

Case Studies
S.NO. QUESTIONS MAR
KS
6 Shyam wanted to start a business of selling handicrafts by getting in touch with 3
the craftsmen in the rural areas of Bengal. He wants to make a low investment
in fixed capital. Advise him in taking suitable decisions regarding the Nature
of Business, Scale of operations and Financing Alternatives (in a developed
financial market) that he needs to take for the purpose.
7 Yogesh, a businessman is engaged in purchasing and selling of Ice-creams. 3
Identify the working capital requirement of Manish giving reasons in support
of your answer. Explain any two factors that will affect his fixed capital
requirements.

8 Pinnacle Ltd. deals in the sale of stationery and office furniture. They source 3
the finished products from reputed brands who gave them four to six months
credit.
Seeing the demand for electronic items, they are also planning to market
these items by opening outlets throughtout India. For this, they have decided
to join hands with a Japanese electronic goods manufacturer.
Identify and state any two factors that would affect the fixed capital
requirement of pinnacle Ltd. as discussed above.

9 Saksham Ltd. a firm manufacturing textiles, wished to diversify their business. 4

They were considering two options, either to diversify into manufacturing
tooth-paste or switches. They wanted to invest in the purchase of land, to set
up a manufacturing unit in the backward areas of Gujarat, which would also
lead to the generation of employment opportunities in the area, but only after
fulfilling all legal requirements and taking appropriate steps to ensure that the
environment was not polluted. The finance manager of the company, Mr.
Ramakant was asked by the management to prepare a report on the factors
which should be considered while making the above investment decision.
(A) State any two factors that Mr. Ramakant would give in his report.
(B) Also state any one reason which makes it important for the above
decision to be made carefully.
 KVS – ZIET BHUBANESWAR 2023-24

10 Somnath Ltd. is engaged in the business of export of garments. In the past, the 4
performance of the company had been upto the expectations. In line with the
latest technology, the company decided to upgrade its machinery. For this, the
Finance Manager, Dalmia estimated the amount of funds required and the
timings. This will help the company in linking the investment and the financing
decisions on a continuous basis. Dalmia therefore, began with the preparation
of a sales forecast for the next four years. He also collected the relevant data
about the profit estimates in the coming years. By doing this, he wanted to be
sure about the availability of funds from the internal sources of the business.
For the remaining funds he is trying to find out alternative sources from
outside.
Identify the financial concept discussed in the above para. Also state the
objectives to be achieved by the use of financial concept, so identified.

11 A business that doesn’t grow dies”, says Mr. Shah, the owner of Shah Marble 6
Ltd. with glorious 36 months of its grand success having a capital base of Rs.80
crores. Within a short span of time, the company could generate cash flow
which not only covered fixed cash payment obligations but also create
sufficient buffer. The company is on the growth path and a new breed of
consumers is eager to buy the Italian marble sold by Shah Marble Ltd. To meet
the increasing demand , Mr. Shah decided to expand his business by acquiring
a mine. This required an investment of Rs.120 crores. To seek advice in this
matter, he called his financial advisor Mr. Seth who advised him about the
judicious mix of equity(40%) and Debt(60%). Mr. Seth also suggested him to
take loan from a financial institution as the cost of raising funds from financial
institutions is low. Though this will increase the financial risk but will also
raise the return to equity shareholders. He also apprised him that issue of debt
will not dilute the control of equity shareholders. At the same time, the interest
on loan is a tax deductible expense for computation of tax liability. After due
deliberations with Mr. Seth, Mr. Shah decided to raise funds from a financial
institution.
(a) Identify and explain the concept of financial management as advised
by Mr. Seth in the above situation.
(b) State the four factors affecting the concept as identified in part (a)
above which have been discussed between Mr. Shah & Mr. Seth.
12 ‘Sarah Ltd’ is a company manufacturing cotton yarn. It has been consistently 6
earning good profits for many years. This year too it has been able to generate
enough profit. There is availability of enough cash in the company and good
prospect for growth in future. It is a well managed organisation believes in
quality, equal employment opportunities and good remuneration practices. It
has many shareholders who prefer to receive a regular income from their
investments. It has taken a loan of Rs 40 lakh from IDBI and is bound by
certain restrictions on the payment of dividend as per terms of loan agreement.
The above discussion about the company leads to various factors which decide
how much of the profit should be retained and how much about to be
distributed by the company.
Quoting the lines from the above discussion Identify and explain any four such
factors.
 KVS – ZIET BHUBANESWAR 2023-24

Suiggested Answers
Multiple choice questions
Ans.1 (a)
Ans.2 (a)
Ans.3 (b)
Ans.4 (c)
Match
Ans.5 1-(b), 2-(a), 3-(d), 4-(c)
Case Studies
Ans. Answers
No.
6 Shyam should take into account the following points while taking decisions along
the following factors:
(a) Nature of Business: it is advisable that shyam starts a trading concern and
engages in buying handicrafts from the craftsmen and selling them directly
to the prospective buyers. He should not plan to set up a manufacturing unit
as he wants to make a low investment in fixed capital.
(b) Scale of operations: it is advisable that initially shyam carries out his
business on a small scale.
(c) Financing alternatives: It is advisable that shyam may opt for procuring
fixed assets on lease instead of purchasing them as h wishes to make a low
investment in fixed capital. Moreover in a developed financial market
leasing facilities are easily available.
7 Working capital will be less as he is engaged in trading business.
Factors affecting fixed capital
Level of collaboration and financial alternatives available
8 Diversification and level of collaboration
9 (a) A long term investment decision is also called a capital budgeting decision.
The factors that should be kept in mind by the company while making the
investment decision are as follows:
(A) Cash inflows from the project
(B) Rate of return
(b) Due to the following one reason the above decision is to be made carefully:
It affects the overall level of business risk of the organization and its growth and
profitability of business in future.

10 Financial Planning
Objectives:
(a) To ensure availability of funds whenever required
(b) To see that the firm does not raise resources unnecessarily.
11 (a) Capital structure
(b) Factors:
(i) Cash flow position
(ii) Risk consideration
 KVS – ZIET BHUBANESWAR 2023-24

(iii) Tax rate

(iv) Control
12 Any five factors:
Growth opportunities, Stability of dividend, Legal restictions, Restrictions in loans
agreement, liquidity, stability of earnings etc.

Chapter-10 Financial Markets

Sr. Questions Marks

No.
1 Money market deals in ________ securities. 1

(a) Short-term (b) Long-term

(c) Short-term and long-term (d) Mid-term

Ans: (a) Short-term
2 ________ is a part of capital market. 1

(a) Call Money (b) Primary Market

(c) Secondary Market (d) Primary and Secondary Market

Ans: (d) Primary and Secondary Market
3 Secondary market deals with the ________ of existing securities. 1

(a) Purchase (b) Sale

(c) Purchase-sale (d) Stock

Ans: (c) Purchase-sale
4 Which is the major part of financial system? 1

(a) Financial market

(b) Financial institutions

(c) Financial securities

(d) All of above

 KVS – ZIET BHUBANESWAR 2023-24

Ans: (d) All of above

5 Sumita is a professor in a reputed business institute. While 3
explaining the procedure of stock exchange trading, she shared with
her students that many years back she had bought 200 shares of a
leading automobiles company. As per the settlement procedure she
paid for the shares and received the share certificates in physical
form. However, when she had sent those certificates to the
company to get them endorsed in her name, she was informed by
the company that those certificates were duplicate.
Therefore, in order to protect the investors from many such
malpractices, now only screen-based trading is done and
dematerialisation is compulsory.
In context of the above case:

1. What is screen based trading?

2. Give the meaning of ‘dematerialisation’. State any two of its
advantages.

Answer:

1. Screen-based trading refers to the process of buying or selling

securities online.
2. Dematerialisation refers to the process of holding securities in
electronic form. The two advantages of Dematerialisation as
follows:
 The securities in the demat account can be offered as
security to raise loans.
 Since the shares certificates are not held in physical form,
there is no danger of loss, theft or forgery.

6 These days, the development of a country is also judged by its system 3

of transferring finance from the sector where it is in surplus to the
sector where it is needed most. To give strength to the economy, SEBI
is undertaking measures to develop the capital market. In addition to
this there is another market in which unsecured and short-term debt
 KVS – ZIET BHUBANESWAR 2023-24

instruments are actively traded every day. These markets together

help the savers and investors in directing the available funds into
their most productive investment opportunity.
(a) Name the function being performed by the market in the above
case.
(b) Also, explain briefly two other functions performed by this
market.
Answer. (a) Allocative function
(b) Functions performed by Financial Markets
1. Facilitating Price Discovery; In the financial market, the
households are suppliers of funds and business firms
represent the demand. The interaction between them helps
to establish a price for the financial asset which is being
traded in that particular market.
2. Providing Liquidity to Financial Assets: they provide liquidity
to financial assets, so that they can be easily converted into
cash whenever required. Holders of assets can readily sell
their financial assets through the mechanism of the financial
market.

7 AdityaKhosla, the Managing Director of ‘D.L.W. Ltd.’ and Rajesh Puri, 3

the Finance Manager were discussing about avenues of investing the
idle funds of the company. AdityaKhosla was of the opinion that
money should be invested in the capital market whereas Rajesh Puri,
being more conservative, felt that it would be better if the investment
was made in the money market. Since the economy was buoyant, the
Managing Director convinced Rajesh that they should take advantage
 KVS – ZIET BHUBANESWAR 2023-24

of it and invest in the capital market to get good returns. Ultimately

it was decided to invest the idle funds in the capital market.
(a) Why is the capital market expected to give a better return in a
buoyant economy? State the reason.
(b) Why and how safe are the securities in this market as
compared to the money market?

Ans:
(a) Capital market is expected to give a better return in a buoyant
economy as:
(i) The securities are held for a longer duration
(ii) There is a scope of earning capital gains on shares.
(b) Securities in capital market are riskier with respect to return and
principal repayment. Issuing company may fail to perform as
promoters may defraud investors.
8 Differentiate between Primary Market and Secondary Market on 4
the following basis :
(a) Company involvement (b) Price determination
(c) Location (d) Capital formation
Answer
Basis Primary Market Secondary Market
(a)Company Securities are sold Ownership of
Involvement by the company to existing
the investors securities is
exchanged
 KVS – ZIET BHUBANESWAR 2023-24

between investors
company is not
involved
(b) Price Prices are Prices are
Determination determined by the determined
management of the by the forces of
company demand
and supply of
securities.
(c) Location No fixed Located at specified
geographical places
Location.
(d) Capital Directly promotes Indirectly promotes
Formation Capital formation. Capital formation
9 Distinguish between money market and capital market on the basis 4
of:
(a) Participants (b) Instruments
(c) Safety and (d) Expected return
Ans:
Distinction between Capital Market and Money Market

Basis of Diff Capital market Money market

Participants The participants in the Participation in the
capital market are money market is by and
financial institutions, large undertaken by
banks, corporate institutional participants
such as the RBI, banks,
 KVS – ZIET BHUBANESWAR 2023-24

Entities, foreign financial institutions and

investors and ordinary finance companies
retail investors from
members of the public.
.
Instruments The main instruments The main instruments
traded in the capital traded in the money
market are – equity market are short term
shares, debentures, debt instruments such as
bonds, preference T-bills, trade bills reports,
shares etc. commercial paper and
certificates of deposit.

Safety Instruments are riskier But the money market is

both with respect to generally much safer
Returns and principal with a minimum risk of
repayment. Issuing default.
companies may fail to
perform as per
projections and
promoters may defraud
investors.

Returns The investment in Returns are fixed

capital markets
generally yield a higher
return for investors
 KVS – ZIET BHUBANESWAR 2023-24

10 The Bombay Stock Exchange (BSE) is Asia’s first stock exchange and 6
the world’s 11th largest stock exchange. It became the first stock
exchange to be recognized by the Indian Government under the
Securities Contracts Regulation Act. Its automated, screen-based
trading platform called BSE On-Line Trading (BOLT) had a capacity of
8 million orders per day. The BSE has also introduced a centralized
exchange-based internet trading system, BSEWEBx.co.in to enable
investors anywhere in the world to trade on the BSE platform.
In context of the above case:

1. Name the organisation that regulates the working of stock

exchanges in India.
2. State any three functions performed by stock exchanges.
3. Give any two advantages of screen-based trading.

Answer:

1. Securities And Exchange Board of India (SEBI) regulates the

working of stock exchanges in India.
2. Three functions performed by stock exchanges are as follows:
 Ensures liquidity and marketability of existing securities
by a providing a ready and continuous market for the sale
and purchase of securities.
 Helps in determining the prices of the securities through
the forces of demand and supply.
 It provides a legal framework for fair and safe dealings.
3. Two advantages of screen-based trading are as follows:
 As the investors get access to the stock market during
real time, there is complete transparency in the dealings.
 It provides a common platform for exchange of securities
thereby increasing the efficient transactions by saving time,
effort and money.

11 Ragu works as a waiter in a five star hotel in Mumbai. While serving 6

the customer he overhears him at the table saying that the he has
made profits higher than expected by investing in securities market.
So, Ragu also decides to make a nominal investment from his savings
in the stock market in pursuit of higher gains. In context of the above
 KVS – ZIET BHUBANESWAR 2023-24

case:
As a financial consultant, apprise him of the steps involved in the
working of a Demat system.
Answer:
Ragu will have to initiate the following steps for trading through a
Demat system:

 He will have to first open a Demat account with a depository

participant (DP) who may either be a bank, broker or financial
services company by furnishing certain details and information
about himself including PAN number, date of birth, bank
account details, income details etc.
 If he plans to buy shares through a public offer he will have to
give details of his Demat account, bank account etc. On
allotment the shares will be directly credited to his account.
 If he decides to buy shares otherwise, he will have to instruct
his broker with the details about the name of the company,
number of shares, price etc. The transaction will be executed
through the depository participant and he will have to make
payment for them within T + 2 days.
 On contrary, whenever he decides to sell shares, he will have
to instruct his broker with the details about the name of the
company, number of shares, price etc. The transaction will be
executed through the depository participant and his account
will be debited accordingly. He will receive the payment in T +
2 days.

Unit 11 - Marketing Management

Q.No Questions Marks

1 ‘TVS Ltd.’ entered into the market with colored television and have now 1
introduced products like audio systems, air-conditioners washing machines, etc.
 KVS – ZIET BHUBANESWAR 2023-24

The company is not only offering the products but also handling complaints and
offering after-sales services.
The element of marketing-mix discussed here.
a) Product b) Price
c) Physical distribution d) Promotion
2 Name the function of marketing which is concerned with cost and location of 1
target market.
a) Physical distribution b) pricing
c) Transportation d) storage and warehousing
3 “How are you telling the target customers about your product” this relates 1
to which concept of marketing mix
a) product b) price
c) place d) promotion
4 Match the following examples with their relative terms
1. Basmati Rice a) Generic
name
b) Brand name

2.
3. Book c) Logo
4. Maggi d) Grading

5 You are a soap manufacturer and want to introduce a new hand wash in the 3
market. Which factors will you consider to fix price of your product? Give any
three points.
 KVS – ZIET BHUBANESWAR 2023-24

6 JTM Ltd. launched ‘Buddyline’, an exercise book and comprehensive stationery 3

brand name comprising of ball pens, gel pens and geometry boxes after
identifying the target market and understanding the needs and wants of the
consumers of that market. All their products were of good quality and eco-
friendly but expensive. They wanted to distinguish their products from that of
their competitors. They spent lot of efforts, time and money in creating the
brand name, as they knew that without a brand name, they can only create
awareness for the generic products and can never be sure of the sale of their
products. The effort paid off and the demand for the products started growing.
The customers liked the brand and became habitual to it. They did not mind
paying a higher price. Over a period of time, it became a status symbol to buy
‘Buddyline’ brand because of its quality. The consumers felt pride in using them.
(i) Identify the marketing management philosophy followed by JTM Ltd.
(ii) Explain the advantages of branding to the marketers highlighted in the above
7 Oriflame have been working with skincare and that has been their area of 3
expertise for more than over 40 years. They combine their products with the
best of what the nature has got to give, with the science behind it. Pure
ingredients and very strict manufacturing standards, little energy waste and
strong environmental policies are the manufacturing mantras of the company.
Oriflame is aware of the growing concerns about environment so it is providing
products which are not tested on animals, without any perfume, natural
ingredients which cannot harm the skin or cause allergies use environment
friendly techniques of production
Identify and explain the marketing philosophy followed by the company on the
basis of :
a) main focus
b) means
c) ends
 KVS – ZIET BHUBANESWAR 2023-24

8 A company launched a new car running on bio diesel. The launch event was 4
covered by the popular newspapers and news channels.
a) Which non-personal form of communication was used by the
company?
b) How is it different for other non –personal mode of communication?
c) Explain any two demerits of the mode used by the company.
9 Flipkart was set up by two software engineers from the Indian Institute of 4
Technology, Delhi, Sachin Bansal and Binny Bansal, in 2007. It sold many items
under various categories like apparels, appliances, books, etc. October being
the festive season in India, the big e-commerce companies were looking to lure
buyers through various attractive discounts and offers. Flipkart too declared a
sale on October 6, 2014. The company spent a huge amount of money on its ad
campaigns, installing servers to handle online traffic and deploying staff for
processing the orders and delivering the goods. Unfortunately for them, things
did not turn out quite as they expected. Flipkart's servers crashed, items went
out of stock, and the prices of items changed during the sale. Buyers were
outraged and took to the social media to express their ire. Manufacturers too
accused the company of selling goods below the selling price. To protect the
image of their company, Flipkart’s founders sent out apology letters to the
buyers regretting the inconvenience they had caused and assuring them that
they would deliver better service in future. Despite all the hue and cry, Flipkart
witnessed a mega sale of $100 million (Rs 6 billion) in just 10 hours.
Name and explain the marketing concept was used by Flipkart to protect the
image of the company?
 KVS – ZIET BHUBANESWAR 2023-24

10 Reliance Jio Infocomm Limited is the subsidiary company of Reliance 6

industry which provides 4G network service. Jio is the only Vo-LTE (voice over
LTE) provider in the country. Reliance Jio was launched with free unlimited
calling and data usage for 3 months which was extended for another three
months later as a special offer. This was one of the biggest reasons for its
popularity among the masses. After April 2017 customer has to pay for their
calls and data usage there are many very reasonable price plans from which you
can choose to use. Company used all types of medium for promoting its
products in market i.e. print, electronic media, sponsorship of sports and game
shows, Display and Hoardings, Social Networking Sites, departmental stores etc.
at the end of the third month it provided another attractive offer for its existing
customers to pay a sum of Rs. 300 once and enjoy the same service for next
three months. As a result the company covered a major market share within a
short span of time. It has launched its own mobile phones, wifi Routers also. In
the context of the above case:
a) Identify which types of promotional tools were used by the company?
b) Identify and explain two features of promotional tools identified in part
(a)
11 As the number of people making online purchase has increased manifolds, there 6
is a growing concern about the disposal and management of packaging waste.
Every item bought is delivered with excess packaging and sometimes even non-
biodegradable materials are used.
In the context of the above case :
a) Name and explain the different levels of packaging used by the
marketer.
b) Describe any two functions performed by the additional packaging done
in online sold material.
c) State any two factors to be kept in mind by online marketer while
designing the packaging of its products.
 KVS – ZIET BHUBANESWAR 2023-24

ANSWERS
MARKETING MANAGEMENT

1 a) Product 1
2 Transportation 1
3 d) promotion 1
4 1 (d), 2(c), 3(a), 4(b) 1
5 Factors affecting prices (any three) 1x3=
1. Cost 3
2. Demand and utility
3. Pricing objectives
4. Extent of competition in the market
5. Government regulations
6. Marketing method used
6 (i) Societal marketing philosophy. 1+2
(ii) Advantages of branding highlighted in the above case are: (Any two)
(a) Helps in product differentiation.
(b) Helps in advertising and display programmes.
(c) Differential pricing.
7 Societal marketing concept/philosophy 3
Main focus : customers’ need and society’s well being
Means: integrated Marketing
a) Ends: Profit through customer satisfaction and social welfare
8 b) Publicity 1+1
+2=
c) It is non- paid form of communication it is free of cost and comes in the
4
form of news
d) i. no control on message
ii. news may be negative also
39 Marketing concept used by Flipkart is Public Relation 1+3=
4
10 a) Advertisement and Sales Promotion 1+2
b) Features of advertising +2=
1. Paid form 5
2. Impersonal communication
3. Mass reach
4. Identified sponsor
Features of Sales promotion
1.encourage the buyers to make immediate purchase
2. include all promotional efforts other than advertising, personal selling
and publicity
3. provide short term incentives to boost the sales of a firm.
4. it is usually undertaken to supplement other promotional efforts such
as advertising and personal selling.
 KVS – ZIET BHUBANESWAR 2023-24

11 a) 1. Primary Package: It refers to the product’s immediate container. In some 3+2

cases, the primary package is kept till the consumer is ready to use the product . +1=
2. Secondary Packaging: It refers to additional layers of protection that are kept 6
till the product is ready for use, e.g., a tube of shaving cream usually comes in a
card board box.
3. Transportation Packaging: It refers to further packaging components necessary
for torage, identification or transportation.
b) Functions performed by the additional packaging done in online sold material.
1. Product Protection: additional packaging protects the product from damage
which may be caused during transportation
2. Easy To Transport: additional layers help to handle the product easily during its
transportation and carrying it through different modes of transports without
damage.
c) factors to be kept in mind by online marketer while designing the packaging of
its products
1. use biodegradable packaging material
2. packaging should enhance utility of the product

Unit:12 - CONSUMER PROTECTION ACT 1986

Q.no Questions Marks

1 Sonu went to a shopkeeper to buy shampoo. The shopkeeper forced him to 1
buy a particular brand of shampoo out of various available brands, irrespective
of the willingness of Sonu.. Which right of Sonu, as a consumer, has been
exploited?
(a) Right to Information. (b) Right to choose
(c) Right to consumer education. (d) Right to be heard

2 Rita wants to buy a packet of juice. As an aware customer, how can she be 1
sure about the quality of juice she plans to buy?
(a) By ISI mark (b) By FPO mark label
(c) By Hall mark (d) Agmark

3 Vijay purchased a flat for Rs. 50 lacs and found it different from what was 1
agreed. He wants his money back. Suggest him the appropriate authority to
file his complaint in the three-tier machinery under the Consumer Protection
act, 1986.
(a) State commission (b) District forum
(c) National commission (d) Supreme court

4 Match the following quality mark is a consumer should look for while 1
purchasing the following products.
Products. Quality marks
(A) Electrical goods. 1. FPO marks
(B) Agricultural Products. 2. ISI mark
(C) jeweler. 3. Hall mark
(D) Food products. 4. Agmark
 KVS – ZIET BHUBANESWAR 2023-24

5 Reena purchased some household goods from a ‘General store’. After 3

reaching home she found a face cream which she had not billed for. After
checking the date of expiry and other details, she started using it. Her face
burnt due to the use of the cream. Where should Tanya file a complaint?
Justify. Under Consumer Protection Act, 1986 who can file a complaint?

6 Seema purchased a book from Harish Book Store. While reading the book, 3
she found that sixteen pages were missing. She approached the seller of the
book and complained about the missing pages. The seller promised that if the
publisher was ready to change the book he would change the same. After a
week, the seller informed Seema that the publisher had refused to change the
book. Where can Seema file a complaint against the seller of the book? Give
reason in support of your answer. Also explain who is a consumer as per
“Consumer Protection Act 1986”.
7 Raghav moved from Dehradun to Mumbai to work as an artist in television 3
serials. On getting his first salary, he opened an account in a nearby
commercial bank and also opted for ATM facility under ATM card. After a few
months, he lost his ATM Card and lodged a request with the bank for
furnishing duplicate card. Consequently, he was allotted duplicate ATM Card
Number but that card was not given to him. After a week, he received a SMS
message on his mobile stating that sum of Rs. 10,000/- has been withdrawn
from his account. Since the duplicate ATM card was not given to him, he
brought the debit entry in the notice of the bank. The bank assured to repay
that amount to him within 15 days after investigating the issue. But, more
than a month has passed since then and despite his persistent efforts the bank
has not taken any action so far. So, he files a case against the bank in the
district forum. The consumer court can issue a notice to the bank after being
satisfied with the genuineness of the complaint and directs the bank to repay
Rs. 10,000 to Raghav along with the compensation of Rs. 50,000. Name the
rights exercised by Raghav in the context of the above case.

8 In the year 2015, Under section 12(ID) of the Consumer Protection Act, the 4
Consumer Affairs Ministry had filed a suit in National Consumer Disputes
Redressal Commission (NCDRC) against Nestle India, the manufacturer of
Maggi noodles, seeking about Rs. 640 crore in damages for alleged unfair
trade practices, false labeling and misleading advertisements.
In context of the above case:
1. Name any two other two parties besides government who can file a case
under Consumer Protection Act 1986.
2. Why has the government filed a suit in National Consumer Disputes
Redressal Commission (NCDRC) and at no other level of three tier redressal
system?

9 On her sister’s wedding, Radha decided to gift her gold earrings. When she 4
shared her plan with her husband, he showed her an article in the daily
national newspaper under the heading “Jago Grahak Jago.” The campaign
 KVS – ZIET BHUBANESWAR 2023-24

included details about the various aspects that people must consider before
buying any gold jewellery.
1. Why do you think campaigns like “Jago Grahak Jago” are inserted in the
newspaper?
2. Name the right of consumer being fulfilled through this initiative of the
government
3. State any two responsibilities that Radha must discharge as an aware
consumer while buying her sister’s wedding gift.

10 Aman a degree holder in Entrepreneurship came to know about Piplantri 6

Village located in Rajasthan, where in 2006 an initiative was started, in which
111 trees are planted every time a girl child is born. To keep termites away
from the trees the villagers have planted 2.5 million Aloe Vera plants around
the trees. This has turned the village into on oasis, as the planting of trees led
to higher water levels. Aman decided to visit the village to start a business
unit, for the processing and marketing of Aloe Vera into juices, gels and other
products. However, on visiting the village Aman found that the villagers were
suffering exploitation at the hands of local merchants who were engaged in
unscrupulous, exploitative trade practices like hording and black marketing of
food products and also selling unsafe, adulterated products to the villagers.
After looking at their plight instead of a business organization he decided to
set up an organization for the protection and promotion of the consumer
interest of the villagers.
State the functions that the organization established by Aman will be
performing. (any six points)

11 Good Health Ltd., a pharmaceuticals company, has introduced mosquito 6

repellent bands under the brand name ‘Jaddu’ in the wake of outbreak of
dengue in various parts of the country. The product attracted many people
from all age groups, especially kids. However, the company failed to provide
adequate guidance for the users on the label of the product in terms of time
period of the effectiveness of the repellent band once its seal is opened.
Because of this ambiguity, many buyers faced problems. In context of the
above case: 1. Identify and explain the consumer right which has been
overlooked by the company .
2. Name and explain any two functions of the important product related
aspect ignored by the company.
 KVS – ZIET BHUBANESWAR 2023-24

Suggested Answers

Q.no Answer Marks

1 (b) Right to choose. 1

2 (b) By FPO mark label 1

3 (a) State Commission 1

4 A. __2 1
B. ____4
C _____3
D______1

5 Reena cannot file a complaint in any consumer court since she does not 3
have the proof of purchase, i.e., cash memo. She did not fulfil her
responsibility of an honest consumer. She should have gone back to the
general store to get its billing.
Under the Consumer Protection act, 1986, any of the following can file a
complaint:
1. Any consumer
2. Any registered consumers’ association
3. The central Government or any State Government
4. One or more consumers on behalf of many consumers having same
interest.
5. A legal representatively of a deceased consumer.

6 Since, the value of the goods or services in question, along with the 3
compensation claimed, does not exceed Rs. 20 lakhs she will file a case
in the District Forum.
1 A ‘consumer’ is generally understood as a person who uses or
consumes goods or avails of any services.
2. A person who buys goods for commercial purpose or resale will not be
considered to be a consumer.

7 The two rights exercised by Raghav in the context of the above case are 3
Right to be heard and Right to seek redressal.
8 The two other two parties besides government who can file a case under 3
Consumer Protection Act 1986 are any consumer and any registered
consumers’ association.
2. The government filed a suit in National Consumer Disputes Redressal
Commission (NCDRC) and at no other level of the three tier redressal
system because a complaint has to be made to the National Commission
only when the value of the goods or services in question, along with the
compensation claimed, exceeds Rs. 1 crore.
 KVS – ZIET BHUBANESWAR 2023-24

9 The campaigns like “Jago grahak Jago” are given in the newspaper to 5
make the consumers aware of the various undesirable activities like
unscrupulous, unfair trade practices etc which are carried out by the
marketers to exploit the buyers.
2. Right to Consumer Education is being fulfilled through this initiative
of the government. 3. The three responsibilities that Radha must
discharge while buying her sister’s wedding gift are as follows:
1. Buy only standardized goods and check for standardization mark like
Hallmark for gold jewellery.
2. Assets herself to ensure that she gets a fair deal.
3. Ask for a cash memo on purchase of goods or services.
Ans. 25
10 Functions of an NGO / Consumer organization 6
1. Educating the villagers / general public about consumer rights by
organizing training programmes, seminars and workshops.
2. Publishing periodicals and other publications to impart knowledge
about consumer problems, reliefs available and other matters of interest.
3. Carrying out comparative testing of consumer products in accredited
laboratories to test relative qualities of competing brands and publishing
the test results for the benefit of consumers.
4. Encouraging consumers to strongly protest and take an action against
exploitative and unfair trade practices of sellers.
5. Providing legal assistance to consumers by way of providing aid, legal
advice etc, in seeking legal remedy.
6. Filing complaints in consumer courts on behalf of consumers.

11 The Right to information is being overlooked by the company in the 6

above mentioned case. 1. According to the Right to information, a
consumer has the right to get complete information about the product he /
she intends to buy including its contents, date of manufacture, date of
expiry. Price, quality, directions for use etc. Also, as per law, it is
mandatory for the marketers to provide complete information about the
product / service to the buyers.
2. The important aspect related to the marketing of products which has
been ignored by the company is Labelling.
The two important functions performed by labelling are: 1. Describes
the product and specifies its contents: 2. Helps in identification
of the product or brand: